Spain cannot have it both ways on tax transparency agreements say PDP

Spain "cannot have it both ways" says Gibraltar's Progressive Democratic Party.

In a statement today, which reflect my views on this issue completely (not the first time I agree entirely with the PDP I will add), the PDP say Spain "cannot constantly prosecute an unjustifiable campaign aimed at tarnishing our (Gibraltar's) finance centre for not co-operating and then when Gibraltar signs an exchange of information agreement with the United States make a diplomatic protest to the US".

The PDP statement follows reports of a complaint by the Spanish Foreign Ministry to the United States over an agreement for the exchange of tax information which the US signed with Gibraltar at the G20 Summit, at the end of March.

The PDP statement today argues that the agreement with the US "followed the same format as those with the Channel Islands", and added:

"It is absolutely right that the Government should have signed the Agreement directly and without any presence of the United Kingdom chaperoning proceedings."

In their statement today, Keith Azopardi, the PDP leader explains that Gibraltar "is fiscally sovereign and has the power to enter into these Agreements".

"Indeed, the PDP would have objected if the UK had signed such an Agreement on Gibraltar’s behalf because it would have amounted to a clear erosion of our constitutional competences."

Mr Azopardi, who served as Deputy Chief Minister of Gibraltar and Minister for Trade and Industry until 2003, in the incumbent GSD (Gibraltar Social Democrats) Government, said this was "precisely the condition" that he mentioned to the US when they first raised the possibility of signing such an Agreement during his tenure as Minister responsible for Financial Services.

Mr Azopardi is urging the Government to now "move ahead and sign up to further Agreements "so that Gibraltar’s finance centre can be placed on the OECD (Organisation for Economic Co-operation and Development) 'white-list' and taken off the so-called ‘grey’ list, a list of offshore 'jurisdictions that have committed to internationally agreed tax standards' but that have not yet substantially implemented these agreements.

Concluding the PDP statement, Mr Azopardi says the Government "has wasted the last five years" and that it should now "accept realities":

"The Government has wasted the last five years when it was obvious to all as far back as 2003 that the global environment was changing and that it would be necessary to sign up to these Agreements.

The Channel Islands started to do so in 2002 and we have lost ground in this area because of the Government’s reluctance to accept realities.

While the PDP support the signing of this Agreement it is clearly insufficient and the Government now needs to move far more quickly to catch up with our competitors!"

Amen to that Keith... Well said!

Gibraltar territorial waters and sovereignty once more under threat from Spanish bullying

In an alarming move over Gibraltar territorial waters, the European Commission has apparently accepted a Spanish request to designate an area of Gibraltar waters as an EU environmentally-sensitive site under Spain’s responsibility.

Reports in the media say officials in Brussels did this even though much of the area included, historically, are British territorial waters and had already been listed by the UK as a European protected site nearly three years ago.

The UN Convention on the Law of the Sea 1982, which entered into force in 1995, set a new standard of 12 nautical miles. Most countries, including member states of the European Union, are signatories to the Convention. It applies to Gibraltar.

Spain added a comment regarding Gibraltar at the time of its adherence to the Convention which is of no legal effect in modifying the terms of the Convention. It does, however, record the view taken by Spain on this point, a view which no other signatory to the Convention accepts or accedes to.

Under the Convention, Gibraltar generates its own 'Territorial Sea' of 12 nautical miles, or out to median lines where other states' coastlines are under 24 nautical miles distant from Gibraltar.

The image, (top left - courtesy of gibnet.com), shows the current position to the North West and South of Gibraltar but not to the East/South East. This is because, although Spain and Morocco each have claimed the 12 nautical miles of the Convention (although Spain refuses to accept part of Morocco's calculation of the median line to the West), Gibraltar has not yet extended its legal jurisdiction from 3 to 12 miles, so part of the waters to the East/South East remain international waters, though it is open to Gibraltar to annex these waters to its jurisdiction in accordance with its rights under the UN Convention.

Now, the move by the EU officials, prompted by Spain, at the very least, is bound to create a messy legal overlap and threatens to spark yet another row over the jurisdiction of Gibraltar waters.

Both the British and Gibraltar Governments have yet to publicly react to the development, but the GSLP/Liberals Opposition last night insisted this could not go unchallenged. "This situation represents an escalation of the Spanish position in relation to Gibraltar’s territorial sea," the Opposition said.

"Madrid was initially content simply to restate their political opinion and to protest at the Eastside project or the exploration of the wreck of HMS Sussex.

This takes the dispute a step further and the UK cannot continue to look the other way at a time when Gibraltar’s sovereign rights are being challenged in such a blatant manner!"

The Spanish designation, known as Estrecho Oriental, (see image right) covers the waters off the east side of the Rock and south of Europa Point. This is precisely the area included in the EU list by the UK in 2006.

The Spanish move was also criticised yesterday by the Gibraltar Ornithological & Natural History Society (GONHS ), which also urged the Gibraltar and British Governments to take swift action to clarify the matter.

In a statement, GONHS said it was "astonishing" that the UK had either failed to spot the Spanish designation, or chosen not to challenge it.

The Spanish designation in effect gives Spain legal obligations and responsibilities over Gibraltar waters in relation to nature protection. That includes responsibility to undertake assessments and monitor these areas for wildlife, threats, and other activities with environmental implications. For GONHS, this position is unacceptable.

Let me say... for this Gibraltarian, and I am sure I echo the sentiments of ALL Gibraltarians... this position is also unacceptable to me too!

This afternoon, Gibraltar's Progressive Democratic Party also issued a statement, saying that "the designation of Gibraltar waters by Spain, as if they belonged to it, is simply part of Spain’s continuing campaign against the rights of the people of Gibraltar".

Noting Spain's current somewhat surprising belligerent mood, the PDP said:

"These instances are now becoming so common that the whole idea of a 'new' attitude prevailing in Spain (towards Gibraltar) has fallen badly into disrepute.

No-one in Gibraltar can surely believe the protestations that Spain has adopted a more modern attitude of respect to Gibraltar when the examples of Spain obstructing or attacking our rights are occurring on an almost daily basis."

The PDP make an emphatic call on the Gibraltar Government, to take this issue up in its talks with Britain and Spain. They said that the Government "needs to emphasise to Spain, in no uncertain terms, that this guerrilla warfare on all things
Gibraltarian, outside the Cordoba process, is unsustainable and will inevitably sour any prospect of an enduring climate of respect between our two communities".

In a note of sharp rebuke, the PDP ask:

"What is the point of the pretence of cooperation and respect, when outside the Cordoba talks Spain behaves in a completely different manner?"

The PDP say this latest act is "a purported assertion of Spanish sovereignty over our waters", adding that one of the issues of most concern is "that the information annexed to the particular Commission decision was 'based on data proposed, transmitted and validated by Spain and the United Kingdom' among other States". The PDP quite rightly ask:

"Why was this not spotted beforehand by the United Kingdom or Gibraltar Governments?"

Apart from making a political or diplomatic protest, the PDP are calling on the Gibraltar Government "to make representations at the highest level" to ensure that "the EU itself does not adopt the Spanish classification in its reference documents, as this, in effect, threatens our sovereignty".

The PDP statement concludes by saying that the Government should "take legal advice as to whether there are any legal routes open to it to remedy this matter".

To my mind, they should not lose any time in focussing on this. They certainly shouldn't wait for the UK to show any initiative... as I think, what with turning a blind eye to Spain's machinations in the EU in respect to Gibraltar, the falling apart of the economy and chasing banker wankers' pensions (another matter which they should not have allowed to occur in the first place!)... the Brit Government... is otherwise engaged!

When WILL Spain ever stop banging on about the sovereignty of Gibraltar?!!

Will they ever stop banging on about Gibraltar's Sovereignty?

The PSOE's (Partido Socialista Obrero Español) Foreign Affairs spokesperson in the Spanish Senate, José Carracao, has re-opened the question of sovereignty over Gibraltar and the jurisdictional water surrounding the Rock.

Following what is described as a "cordial" meeting with Andrew Whittaker, the Political Affairs Secretary at the British Embassy in Madrid on Wednesday, Carracao said that the "matter of sovereignty has been put aside for too long and should be debated without further delay". Senator Carracao added:

"It is a bilateral matter that must be dealt with by Britain and Spain and can therefore not be included in the Tripartite Forum on Gibraltar".

Senator Carracao, who represents the Campo de Gibraltar in Spain’s upper chamber, also spoke of the need for better maritime control by Gibraltar, categorising the Rock’s maritime authorities as "dangerous for navigation and the environment". As an example, Senator Carracao referred to the ‘New Flame’ disaster, saying "the ship left Gibraltar without permission". He also quoted the founding of the ‘Fedra’ in October 2008, "which had engine trouble and was not reported to the maritime authorities" on the Rock.

During the meeting with Andrew Whittaker, Senator Carracao also spoke of the need for better police control at the border, expressing concerns over "an increase in tobacco smuggling that the Gibraltar authorities are doing nothing to stop". For good measure, Senator Carracao also threw in criticisms about bunkering, the landfill work at East side and the ‘Odyssey’ saga. Carracao believes Odyssey Marine Exploration are intending to return to the area to continue its search for sunken treasure.

Pulling Caruana's chain

Earlier this month, the Spanish senator also had a go at Gibraltar's Chief minister Peter Caruana, saying he should have a "permanent contact with the Mancomunidad de Municipios, the Community of Municipalities of the Campo de Gibraltar, the Junta de Andalucia and the special Spanish delegate in the Campo", presumably referring to himself. He pointed out that he has made this and other suggestions to the Spanish foreign minister Miguel Angel Moratinos.

Sr Carracao wants changes in the Tripartite Forum and is not happy with the way Mr Caruana has "elevated himself to the position of almost a secretary of State". Sr Carracao wants to bring him down to the level of the mayors in the Campo, it would appear, urging that Mr Caruana should have talks with the mayors of Algeciras, San Roque and La Linea. On the other hand he says he is not against Mr Caruana being "at a higher level", but he "should also deal with the municipalities".

Sr Carracao is also of the view that the Opposition leader Joe Bossano should be brought into the picture, because he represents a high percentage of Gibraltarians.

Sr Carracao also wants a greater Spanish economic presence in Gibraltar, he wants to see Spanish businesses established on the Rock.

For a Spanish politician with a long tradition of towing a 'soft line' on Gibraltar, these statements and new tone are quite a turnaround. It makes one wonder what his new agenda is... and why has he turned to banging on about the sovereignty of Gibraltar again? I'm sure many had hoped that the Tripartite Dialogue Forum's Cordoba Accord had put an end to all this nonsense. Well, to be fair, only a very naive optimist would ever think that Spanish politicians would stop banging on about OUR sovereignty, I suppose!

So far, I've not seen any reaction to Carracao, from either the Gibraltar Government or from the official opposition, headed by Joe Bossano. But, there is a reaction today from the somewhat (alas) sidelined Progressive Democratic Party.

In a statement issued this morning, the PDP, says "Senator Carracao’s representations to the British Government, that bilateral sovereignty talks should be opened, are a blast from the past and a reminder that fundamentally the political mood in Spain on the most important question – sovereignty – is still stuck in the past".

"Mr Carracao is the Foreign Affairs spokesman for the Governing PSOE in the Spanish Senate – he is not just another lone political voice. As such his comments are representative of a mainstream political view in the governing party in Spain. That view is clearly shared by PP politicians who have made similar comments in the recent past.

This is a stark reminder of what Gibraltar must continue to struggle against."

The PDP statement adds that they "completely reject that insistence on excluding Gibraltar and its representatives on the most important issue of concern to the people of Gibraltar".

Keith Azopardi, the leader of the PDP, concludes the statement by urging Spain to "carry out a fundamental reassessment of its position":

"Gibraltar’s sovereignty, morally, legally and politically, vests in its people. Spain must carry out a fundamental reassessment of its position on the long-term future of Gibraltar and come to accept that if we are really to move forward and enjoy a modern relationship with our neighbours!"

Well said Keith! I've always thought so too... which is why I asked, will they ever stop banging on about Gibraltar's Sovereignty?!

We've said it before and I shall repeat it here again (I use it as a intro slogan on my blog's side margin... and it's always good to remind one and all!!):

Gibraltar belongs to the People of Gibraltar. It is neither Spain's to claim nor Britain's to give away!